GENERAL TOPICS 1.

2 International Court of Justice

ii

Dispute Settlement

NOTE
The Course on Dispute Settlement in International Trade, Investment and Intellectual Property consists of forty modules. This module has been prepared by Mr. Pemmaraju S. Rao at the request of the United Nations Conference on Trade and Development (UNCTAD). The views and opinions expressed are those of the author and not necessarily those of the United Nations, WTO, WIPO, ICSID, UNCITRAL or the Advisory Centre on WTO Law. The designations employed and the presentation of the material do not imply an expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries. In quotations from the official documents and the jurisprudence of international organizations and tribunals countries are designated as reported. The United Nations holds copyright to this document. The course is also available in electronic format on the UNCTAD website (www.unctad.org). Copies may be downloaded free of charge on the understanding that they will be used for teaching or study and not for a commercial purpose. Appropriate acknowledgement of the source is requested.

WHAT YOU WILL LEARN
The International Court of Justice (hereinafter, the ICJ or the Court) is the principal judicial organ of the United Nations. It offers an important forum for the settlement of international economic disputes among States. This module is intended for those who wish to examine the option of approaching the Court for the settlement of economic disputes. It provides an overview of the functioning of the Court and of its jurisprudence bearing upon international economic issues. A detailed analysis is made of the organization, jurisdiction and procedures of the Court. This analysis enables an assessment of the advantages the Court presents for the settlement of international economic disputes.

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Discuss some important cases involving the economic interests of States and individuals.1.2 International Court of Justice
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OBJECTIVES
Upon completion of this Module the reader should be able to: • • • • • • Distinguish the special features of the ICJ. Explain the law governing its jurisdiction.
. and Assess the usefulness of the Court for the resolution of economic disputes. Identify its structure. Analyse the procedure applicable to cases before the Court.

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INTRODUCTION
1.1 Contrary to the Statute of the PCIJ. 1964. which governed the operation of the Permanent Court. dealt with 29 contentious cases and gave 27 advisory opinions. which came into operation in1922 and ceased functioning in 1940 with the outbreak of the Second World War. at the end of the First World War. and that 16 signatories of the Statute were not participants at the San Francisco Conference. the Permanent Court or the PCIJ). but as a principal judicial organ of the United Nations. including the then Soviet Union and the United States. The Statute. and came into force on 24 October 1945. The Permanent Court. Systems of mediation and arbitration were known. They represented the main forms of civilization and the principal forms of legal systems of the world. The Permanent Court was established with 15 judges elected by the Assembly and the Council of the League of Nations. a concrete shape was given to the idea of a Permanent Court of International Justice (hereinafter. Only States could be parties before the Permanent Court.
1
. 1084-1104.1.
1. However. pp. But it was empowered to give advisory opinions to the Assembly and the Council of the League of Nations. 2 See the Barcelona Traction case. p. was however an instrument independent from the Covenant of the League of Nations. and with the creation of the League of Nations. under a mandate of the Article 14 of the Covenant of the League of Nations.2 Both instruments were adopted on 26 June 1945. ICJ Reports. employing strict judicial techniques. but not the establishment of a permanent bench of judges to settle disputes.2
The International Court of Justice
The Permanent Court was dissolved in 1946.2 International Court of Justice
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1.
It may be noted that 13 of the States represented at the San Francisco Conference were not signatories to the Statute of the PCIJ. the ICJ or the Court) on the same lines as the Permanent Court. 1085. followed by a decision at the San Francisco Conference to create a new International Court of Justice (hereinafter. See Hans-Jurgen Schlochauer (1995). the Statute of the ICJ is an integral part of the Charter of the United Nations (Article 92 of the UN Charter).1 The Permanent Court of International Justice
The idea of peacefully settling disputes at the international level is a very old one.

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and The Rules of the Court.
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. for a term of three years.4 The election is held simultaneously both in the General Assembly and in the Security Council. The Court elects. two judges from Latin America and one judge each from Western Europe and other States and from the Eastern European States.A (ELSI) (United States and Italy).5 Frontier Disputes.p. Such Chambers were constituted upon request of the parties. no more than one national of any State may be a member of the Court. Honduras). 4 Although no specific quota to different regions of the world is assigned. ICJ Reports 1984. the presidency of the Court. competence and procedures. for example. Elections are held every three years for five vacancies of the Court each time.1 Basic Texts
The basic texts on the Court and its work are:3 • • • The Charter of the United Nations. 5 See the Delimitation of Maritime Boundary in the Gulf of Maine Area (Canada v.org/. United States). the President and Vice-President of the Court. 6 The Frontier Dispute (Burkino Faso v. which deal with matters concerning the judges and assessors. Eligible as judges are persons of high moral character and possessing the qualifications required in their respective countries for appointment to the highest judicial offices. 7 Elettronica Sicula S. ICJ Reports 1993. Articles 92 to 96. ORGANIZATION OF THE ICJ
2. It should be pointed out that a judgement rendered by a chamber is considered a judgement of the Court. as well as the proceedings in the contentious and advisory cases. The Court may establish chambers composed of three or more judges.
The basic texts and general information on the ICJ work can be found on its website: www.6 ELSI 7 and Land.2 International Court of Justice
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2. the work of the chambers. Island and Maritime Frontier Dispute (El Salvador v. 8 The Land. which establishes the general lines of the work of the Court. headed by a Registrar.1. In order to get elected.2
Composition of the Court
The International Court of Justice is composed of 15 judges elected for a period of nine years. three judges from Asia. Island and Maritime Frontier cases. ICJ Reports 1986. which determines its organization. Republic of Mali).
2. each voting independently of the other.icj-cij. ICJ Reports 1989. The Court is assisted by a Registry.8 The Court also established a special chamber for environmental matters. in the Gulf of Maine. or jurisconsults of recognized competence in international law. The judges represent the main legal systems of the world. Nicaragua intervening. three judges from Africa. The Statue of the Court. a candidate must obtain an absolute majority in both forums. so far the practice has been to elect one judge from each of the States which are Permanent Members of the Security Council. the internal functioning of the Court and of its registry.

In such a case. No member can be dismissed unless. but should be a national of the party which is not represented on the bench. including ad-hoc judges. the case can be conducted and the judgement delivered exclusively in either English or French.5
Official Languages
The official languages of the Court are English and French.4
Judges Ad hoc
In order to maintain equality in the status of the parties. an English or French translation has to be attached to the judgement (Article 39 of the Statute). no judge may participate in a case brought before the Court in which he/she has previously been involved as agent or counsel for one of the parties.
2. During his/her term of office. or as a member of a national or international tribunal or arbitration. If the parties agree.
2. a language other than French or English to be used by that party. Judges so chosen by the parties have the same rights and duties as the members of the Court for the duration of the proceedings (Article 31 of the Statute). as a member of a commission of inquiry. the Statute provides that where a judge of the nationality of one of the parties is sitting on the bench. It is also open to the President of the Court to suggest that for some special reasons one of the members of the Court should not sit in a particular case and should give his/her notice accordingly. Such a judge need not be a national judge. the matter shall be settled by a decision of the Court. constitute the Bench of the Court in a case. Further. The Court may also authorize. the opposing party may choose an additional judge.8
Dispute Settlement
2. In case of disagreement between the judge concerned and the President.3
The Bench
All the judges of the Court. In this sense. at the request of a party. no judge should engage in any political or administrative functions or in any other occupation of a professional nature (Article 16 of the Statute). each of the parties may choose such a judge if neither of them has its national sitting on the bench. Further.
. in the opinion of other members. a member of the Court may declare that he/she should not take part in the decision in a particular case. he/she has ceased to fulfil the required conditions (Article 18 of the Statute).

2 International Court of Justice
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2.1.
. Nevertheless. each party to a dispute bears its own costs for the procedure.6
Costs
In general. the Court may decide that all or part of a party’s costs be paid by the other party (Article 64 of the Statute and Article 97 of the Rules of the Court).

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However. the Security Council or other organs and specialized agencies of the United Nations. judgments rendered by international administrative tribunals. the applicability of the United Nations Headquarters Agreement. of 25 October 2002 (www.
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Since 1946 the Court has given 24 Advisory Opinions.org) Also see. (ii) Advisory jurisdiction Advisory jurisdiction. concerning.
3. the status of human rights rapporteurs. for example the power of the Court to decide a dispute as to its own jurisdiction in a given case. This is generally done by way of diplomatic protection.icj-cij.9
3. Those questions can only refer to legal questions arising within the scope of their activities. concerns the power of the Court to render a binding decision on the substance and merits of a case placed before it. inter alia. and the discontinuance of a case.2 International Court of Justice
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3. and the legality of the threat or use of nuclear weapons. on the other hand. reparation for injuries suffered in the service of the United Nations. Incidental jurisdiction relates to a series of miscellaneous and interlocutory matters.
. D. the territorial status of South-West Africa (Namibia) and Western Sahara. JURISDICTION AND APPLICABLE LAW
3. only States can be parties before the Court (Article 34(1) of the Statute of the ICJ). Pratap (1972). the admission to United Nations membership. Such protection under international law can be exercised by the State of nationality only after the person concerned has exhausted local/judicial remedies available in the jurisdiction of the State in which the person has suffered the legal injury. its ability to deal with interim measures of protection. Mainline jurisdiction.1. expenses of certain United Nations operations. on the other hand. its general authority to control the proceedings. concerns questions referred to the Court by the General Assembly.2
Mainline and Incidental jurisdiction
A distinction can be made between incidental jurisdiction and mainline jurisdiction.3
Jurisdiction Rationae Personae
The Statute of the ICJ establishes that for contentious jurisdiction.1 Types of Jurisdiction
The International Court of Justice possesses two types of jurisdiction: (i) Contentious jurisdiction Contentious jurisdiction involves States that submit the dispute by consent to the Court for a binding decision. See the general information concerning the International Court of Justice. States are entitled to sponsor the claims of their nationals against other States. Advisory opinions given by the International Court of Justice are not binding.

1
Special Agreement
The conclusion of a special agreement (compromis) to submit the dispute after it has arisen. these are matters for judgement in a given case. no remedies for legal injury can be envisaged at the international level. In interpreting this engagement. “the Court will look at the underlying intention of the State making the declaration. (2) the company has ceased to exist in the country of incorporation. 812).
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Basis for Jurisdiction
The basis for jurisdiction is the consent of the States parties to a dispute. Even though the engagement of jurisdiction of the Court is essentially based on the concurring wills or consent expressed through declarations submitted by States. 7. It is argued that the exercise of diplomatic protection is a right of the State. Light and Power Company Limited (Belgium v.4. Spain).12
Dispute Settlement
Exhaustion of local remedies is more than a procedural requirement. Slovakia). the declaration itself being the expression of a unilateral act of policy to accept the jurisdiction of the Court for disputes coming within its scope” (Rosenne S. for a foreign national to exhaust local remedies. p. in bilateral treaties. The question has also been raised as to whether an individual could renounce through a contract with a foreign government his/her right to seek diplomatic protection from the State of his or her nationality. Further. ICJ Reports. 1997 p. ICJ Reports. For example. See Gabcikovo-Nagymaros Project (Hungary v.10
3. only the State with which the person enjoys a “genuine link” can exercise diplomatic protection (see the Nottebohm case). in the case of persons with dual or multiple nationality. However. a compromis was concluded between Hungary and Slovakia on 7 April 1993. Consent can be expressed in one of the following ways:11
3. It is understood that a State cannot sponsor the claims of its national against another State of which he or she or the entity is also a national. 1997. to submit dispute concerning foreign investment directly to arbitration outside their jurisdiction without requiring the investing company or individuals to exhaust local remedies. Without their exhaustion. but they should also be effective and not merely notional or illusory. this can only be exercised at the discretion of the State. such an engagement is not treated in the practice of the Court as a treaty arrangement. only the State in whose jurisdiction the company is incorporated has the right to sponsor its claims and not the State of nationality of the shareholders. It is also common nowadays for States to agree.12
See Barcelona Traction. and its nationals cannot therefore seek its exemption through a contract. and (3) The State of incorporation is the country responsible for the injury of the company. such remedies should not only be available. even if they constitute a majority share holding in the company. It is also held that where the legal interests of company are injured in a foreign jurisdiction. On the other hand. except where: (1) the rights of the shareholders are directly affected. 12 The dispute concerned the construction and operation of the Gabcikovo-Nagyamaros Barrage system. by which they submitted to the Court the dispute concerning the Gabcikovo Nagymaros Project.

3. 74.
3.4
The Doctrine of Forum Prorogatum
In accordance with the Forum Prorogatum doctrine. (In interpreting the intention of the parties the Court would look to all the elements in a declaration as a unity and not seek a mere grammatical interpretation. See also Phosphates in Morocco judgment. in advance. to submit to the Court any dispute concerning the implementation and interpretation of the treaty. 44. b) any question of international law. through this compromissory clause the States parties agree. p. case (United Kingdom v.”
Several treaties contain such compromissory clauses conferring jurisdiction upon the Court in respect of the parties to those treaties.)
. expressed in an informal and implied manner. ICJ Reports 1998. would constitute a breach of an international obligation. that they recognize as compulsory its jurisdiction in relation to any other State accepting the same obligation in all legal disputes concerning the matters specified in Article 36(2) of the Statute. 52 and 54. and after the case has been brought before it. Canada). modifying and terminating their declarations under Article 36(2).2
Jurisdictional Clause
Another way of conferring jurisdiction on the Court is through the inclusion of a jurisdictional clause in a treaty. p. Iran). Generally. ICJ Reports 1952. in an implied or informal way or by a succession of acts.
Article 36(1) of the Statute
“The jurisdiction of the Court comprises all cases which the parties refer to it and all matters specially provided for in the Charter of the United Nations or in treaties and conventions in force. limiting. the jurisdiction of the court in all legal disputes concerning: a) the interpretation of a treaty.14
13
States enjoy wide liberty in formulating. paras. c) the existence of any fact which. The Anglo-Itanian Oil Co.3
Declarations made under Article 36(2) of the Statute
The jurisdiction of the International Court of Justice also exists by virtue of declarations made by States.2 International Court of Justice
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3. Fisheries Jurisdiction Case (Spain v.1.4. 1938. PCIJ Series A/B No. if established. the Court infers the consent of the State. 104.4.13
Article 36(2) of the Statute of the ICJ
The States Parties to the present Statute may at any time declare that they recognize as compulsory ipso facto and without special agreement in relation to any of the States accepting the same obligations. d) the nature or extent of the reparation to be made for the breach of an international obligation. 23 (the jurisdiction exists only in the limits within which it has been given and accepted).4. The Court has upheld its jurisdiction even where consent has been given after the initiation of proceedings. This method of conferring jurisdiction on the ICJ is also known as the Optional Clause.

Mavrommatis case (1924).7
Some Types of Reservations
Reservations can exclude disputes for which a solution is not reached through diplomatic means. 103-107.18 It is understood that the jurisdiction of the Court exists only to the extent there is common ground between the declarations of each of the parties on the given subject matter. or for which the parties had agreed on some other methods of settlement. para.5
Conditional and Unconditional Jurisdiction
Under Article 36(3) of the Statute. the Court regarded it as immaterial that the ratification of the Treaty of Lausanne (on the basis of which Greece.)
14
. Similarly. Reciprocity is therefore an important feature of the Optional Clause system. the provision contemplates a principle of reciprocity in the form of a choice of partners. 4 and 27. 15. 24-26. PCIJ Series A. its pleading on merits. by virtue of the unilateral initiation of the proceedings by the United Kingdom. Therefore Albania was precluded thereafter from objecting to the jurisdiction. in the Rights of Minorities of Upper Silesia the Court inferred consent from the failure of the Polish Government to raise the question of jurisdiction in its counter-memorial. the Court pointed out that Albania. or for a certain time. 17 Thirlway H (1984). 44. pp.pp.4.” This provision seems to contemplate “not a limitation of the jurisdiction accepted but a condition as to the operation of the declaration itself”.
3.17
3. 2. 34. In that sense.15
3. not a party to the Statute.4. Canada). and its statements subsequent to the filing of the counter-memorial before the League Council. in the Corfu Channel case. (Reservations and conditions attached to a Declaration need not be interpreted in a restrictive way. pp.16 In other words.4. invoked the Court’s jurisdiction) took place after the initiation of the proceedings. declarations may be made “unconditionally or on condition of reciprocity on the part of several or certain States.
In the Mavrommatis case.14
Dispute Settlement
For example.6
Reservations to Jurisdiction
Declarations under Article 36(2) can be made with such reservations as the author State may deem fit to specify. or disputes relating to events occurring in time of war or conflict. No. PCIJ (1928) series A/B no. 16 See Hudson MO (1943). p. 66-467. as indicated in its letter of 2 July 1947 to the Court. pp. Albania accepted the recommendation of the Security Council and the jurisdiction of the Court for this case. 15 ICJ Reports 1947-48. in part. 18 Fisheries Jurisdiction Case (Spain v. would have been entitled to object to the jurisdiction of the Court. it is possible for a State making a declaration under Article 36(2) to specify the time limits and the States in respect of which it would operate. as they define the parameters of the consent of the State. ICJ Reports 1998. Nevertheless.

The general principles of law recognized by civilized nations. whether general or particular.
The United States submitted such an amendment to its declaration in 1946 (referred to as the Connelly Amendment). the ICJ has inherited the jurisdiction of the PCIJ. while submitting their declarations under Article 36 (2).19
3. 111. judicial decisions and the teachings of the most highly qualified publicists of the various nations.
Further. Subject to the provisions of Article 59. the Preliminary Objection. as evidence of a general practice accepted as Law. International custom. the expiry or revocation of a declaration after initiation of proceedings will not affect the jurisdiction. See the Norwegian Loans case. Article 38(2) gives power to the Court to decide a dispute ex aqueo et bono. if the parties agree. ICJ Reports 1957.2 International Court of Justice
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A common form of reservation excludes disputes that come within the domestic jurisdiction of a State. as subsidiary means for the determination of rules of law. that is on the basis of equity. while the primary function of the Court is to settle the dispute in accordance with international law. Murty BS (1968) pp.6
Applicable Law
Matters before the International Court of Justice are decided in accordance with international law. in his view.
. prescribe time qualifications for a dispute to come within the scope of the declaration. pp. and Barcelona Traction.5
Jurisdiction Rationae Temporis
There is no time limit for submission of a dispute to the Court. Judgment. ICJ Reports 1964. the Court is required to apply:
Article 38(1) Statute of ICJ
a) b) c) d)
International conventions. 21 See Rosenne S (1960). According to the Statute. Some declarations exclude situations or disputes arising prior to the date from which they came into force. if the parties agree thereto. the automatic reservation was repugnant to Article 36(6) of the Statute. as. establishing rules expressly recognized by the contesting States. several States. Nottebohm case. ICJ Reports 1953.21
3. In the two latter cases. 125. ICJ Reports 1957. Preliminary Objections. which gave the Court the power to determine its own jurisdiction (Compétence de la Compétence). Judgment. pp.20 The time factor is also important in determining whether. 706-70. 20 Such as arising before or after a specified date. 142. and the Interhandel case.1.
Article 38(2) Statute of ICJ
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This provision shall not prejudice the power of the Court to decide a case ex aequo et bono. 122 and 123. However. in a given case. This type of reservation is also known as the “automatic” reservation. as mentioned previously. The validity of this reservation was questioned by Judge Lauterpacht. However. the Court avoided pronouncing upon the validity of a reservation. Right of Passage over Indian Territory case.

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indicate interim measures for the protection of the rights of one of the parties.
. where necessary. without prejudice to the decision as to its jurisdiction in the case. but also on its own initiative. and advocates of the parties before the Court enjoy privileges and immunities necessary for the independent exercise of their duties (Article 42 of the Statute).
4.
4.2 International Court of Justice
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4. Generally. In some cases. The Court can order interim measures of protection even if there is a special agreement between the parties not to preserve the status quo. the Registrar of the Court will communicate the application to all concerned. They may have the assistance of counsels or advocates. The agents. The current Rules were promulgated in 1978. PCIJ Series A/B No. it has rejected the request for interim measures of protection on the ground that the nexus between the rights to be protected and the measures sought was not established. The Members of the United Nations will be informed through the Secretary-General. See the Legal Status of the South-Eastern Territory of Greenland. the Court may indicate measures not only at the request of one of the parties. 58. Such measures are also aimed at preserving the situation under dispute with a view to giving full effect to the final decision of the Court. such
22 23
See the Anglo-Iranian Oil Co. in Chapter 3. establishes procedures for the conduct of a case before the Court.
4. counsel.22 In other cases.3
Article 41 of the Statute
Interim Measures of Protection
The ICJ may. the Court has first ordered interim measures of protection and later found itself without jurisdiction. The Registrar communicates the application to any other States entitled to appear before the Court (Article 40 of the Statute). while being faithful to the provisions of the Statute. The Court.2
Representation of the Parties
Agents appointed by the parties represent them before the Court.1. Upon receipt of either the notification of the special agreement or a written application. PROCEDURES
The Statute of the Court. treats matters concerning procedure with the necessary flexibility.1
Initiating a Case
States parties to a dispute may commence a case after notifying it to the Registrar of the Court.23 Once the matter has been brought before it. The provisions of the Statute are supplemented by the Rules of the Court. case cited below.

Furthermore. Barcelona Traction case. but even any discussion of. with the agreement of the parties. Preliminary objections are those that require a decision before the Court can proceed to consider the dispute on its merits. if issues concerning jurisdiction and merits. or it may reject the application in toto. As the Court itself pointed out. The Court indicates such measures by way of an order. Preliminary objections are an issue only in the cases where one State party . as interim measures of protection are not a judgement of the Court within the meaning of Article 94 of the United Nations Charter. 44.24 The Court must give notice of the measures indicated to the parties concerned and to the United Nations Security Council (Article 41 of the Statute). or that the matters at issue are not governed by international law.
4. interim measures of protection are ordered only upon the request of one of the parties. an objection to the jurisdiction of the Court to pronounce upon the merits of a case because of an applicable reservation. on facts. may join the preliminary objections to the merits phase of the case. cannot strictly be separated. It must however be noted that. Objections can also be raised on the ground that the instrument conferring jurisdiction is no longer in force. it has a binding effect.
24 25
See LaGrand case. ICJ Reports 2000.
. in most cases. p.25 In some cases. Even if such an order does not have the character of a recommendation.18
Dispute Settlement
a conflict does not arise. as. an objection on the ground that the matter has already been decided. the merits. or that the instrument was not relevant at the critical point in time when the dispute arose. a party that has failed to comply with an order is under obligation to compensate the other party. ICJ Reports 1964.
Bases for an objection
The bases include an objection to the capacity of a State to present a claim before the Court. or that the matter is pending in another forum between the same parties.accepting the optional jurisdiction of the Court. the Court.4
Preliminary Objections
Article 79 of the Rules of the Court governs decisions on preliminary objections. However. the Court may indicate measures other than those requested by a party. the Security Council cannot be called upon to enforce them. the purpose of a preliminary objection is to avoid not merely a decision on. or that the dispute is essentially within the domestic jurisdiction. brings a case against another State party on the basis of the declaration that State submitted under Article 36(2) of the Statute.

Libya). Peru). Poland was allowed to intervene In Haya de la Torre (Colombia v. The phrase. although only in respect of the Legal Regime of the Gulf of Fonseca. Cuba was allowed to intervene in the proceedings. The decision of the Court in relevant part(s) is also binding upon the State that is allowed to intervene. Intervention by a third State does not mean that. the Court rarely allows intervention of a third party.27
4.2 International Court of Justice
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Objections have also been raised on the ground that diplomatic means of settlement have not been exhausted.5
Article 62 of the Statute
Right of Intervention of a Third Party
A State which is not a party to a dispute can intervene in the case if it has an interest of a legal nature that is likely to be affected by a decision in the case. “matters of legal nature”.29 In such a case. Germany). ICJ Reports 1951. or that the matter is under consideration before the Security Council of the United Nations.1. ICJ Reports 1998. The intervening State is not entitled to nominate a judge ad hoc. 29 See Wimbeldon (France. it is for the Court to decide upon its request. ICJ Reports 1984. However. In this case. A resolution adopted in 1999 by the Institute of International Law.28 made some useful suggestions in understanding Article 62 of the Statute of the ICJ. 28 See the Resolution on “Judicial and Arbitral settlement of Disputes involving more than two States”.26 It has also rejected the argument that it should not entertain jurisdiction in a matter. Nicaragua was allowed to intervene in the Land. the intervening State becomes a party to the dispute. Further.
In practice. However. Japan and the United Kingdom v. the decision given
Nicaragua. can intervene in a case in which the construction of the provision of the Convention is at issue. Island and Maritime Frontier Dispute case. Objections that local remedies have not been exhausted have been raised in cases brought before the Court by States pursuant to an infringement of the rights of their nationals. which is also being considered by the Security Council of the United Nations. according to Article 63 of the Statute. a State. The Court has not accepted objections to its jurisdiction on the ground that the issues involved are essentially political. No. Intervention does not require the existence of a jurisdictional link between the parties to the dispute and the third State. or that the issues involved are essentially political in nature. with the consent of all the parties. adopted by the Institute of Iinternational Law at its Berlin Session (1999). Series A. PCIJ. Italy. 1 1923. which is a party to an international convention. once admitted. Lockerbie (United States and the United Kingdom v.
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. means that the rights/obligations of the intervening State under public international law can be affected by the final decision of the Court. an intervener may become a full party to the proceedings.

body. and they alone are authentic. The Court determines the number of sittings and the time allocated to each party. and. the Court passes the necessary orders and makes all necessary arrangements for the taking of evidence (Article 48 of the Statute). commission. under the control of the most senior judge of the Court. A similar procedure is also applied to obtain evidence on the spot (Article 44 of the Statute). or any Convention adopted thereunder. if necessary.7
Evidence and Visit to Site
Where service of a notice upon a person other than the agents. in the absence of both. replies. The hearings of the Court are under the control of the President or. is in issue (Article 34 of the Statute). the Court may at any time entrust any individual.20
Dispute Settlement
by the Court is equally binding on the intervening State. in consultation with the Registrar convenes a meeting of the parties before deciding upon the deadlines and the order in which the written memorials and counter-memorials should be submitted (Article 49 of the Rules of the Court). Minutes are prepared at each hearing and signed by the Registrar and the President. GabcikovoNagymaros).
Written Proceedings
The written memorials and counter-memorials. The oral proceedings before the Court involve the presentation of arguments by the agents. An international organization. counsel and advocates is necessary. does not have a right to intervene in any case before the Court.6
Written and Oral Proceedings
Proceedings before the Court take place in two phases: the written and the oral proceedings.g. bureau. the Court sends such a notice to the government of the State in whose territory the notice has to be served. it only has the right to be informed of any proceedings in which the interpretation of its constituent instrument. however.
Oral Proceedings
4. For this purpose. or other organization that it may select. and. Similarly. The President of the Court. counsel and advocates and also the hearing of witnesses and experts. in his absence. are presented to the Court through the Registrar in the order prescribed and within the time fixed by the Court for this purpose. Further. of the Vice President. The oral hearings are open to the public unless the Court decides otherwise or unless the parties demand that the public not be admitted. with the task of carrying out an inquiry or giving an expert opinion (Article 50 of the Statute).
. the Court may ask such an organization to furnish information or it may supply information on its own initiative. The Court may make an on-site visit for a better appreciation of the case (e.
4.30
30
ICJ Reports 1997.

the Vienna Convention on Consular Relations. If a judge is incapable of attending the meeting. the registry destroys the notes. For instance. These comments are in the form of notes. and presents a revised draft for two readings by all the judges. 1961.2 International Court of Justice
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4. commencing from the most junior judge). presents his/her views by way of answers to the questions drawn up by the Court. The drafting committee revises the draft in the light of the discussion. Each decision is taken by an absolute majority of the judges present. A judge who has failed to attend a part of the oral proceedings or deliberations. The deliberation of the Court are based on issues or questions for decision identified by the President of the Court and finalized in consultation with other judges. and the Treaty of Amity. Further deliberations follow.10 Non-Appearance of a Party
On a few occasions. Abstentions are not allowed. the respondent State has failed to appear before the Court to defend itself.9
Drafting and Adoption of the Judgement
Once the Court forms a broad idea of the decision involved and the majority ascertained.1. At the end of the second reading. a drafting committee of three members of the Court is constituted. and Consular Rights between the United States of America and Iran. In case of a tie in the votes. it deliberates on the matter in private and the proceedings of the Court are kept confidential. the final vote is taken. which are circulated to all the judges.
. At the end of the case.8
Deliberations of the Court
Once the Court declares the hearing closed. can participate in the vote. Economic Relations. the vote of the President determines the outcome of the decision. with judges expressing their comments orally. in the reverse order of seniority (i. a case the United States of America brought before the Court on the basis of the optional protocols to the Vienna Convention on Diplomatic Relations. 1955.e. Each judge. These notes are strictly for the Court. but who has nevertheless not missed anything essential.
4. having questioned the jurisdiction of the Court to adjudicate upon the matter brought before it by the applicant State. Iran did not appear in United States of America Diplomatic and Consular Staff in Tehran. 1963. The preliminary draft judgement is secret and is open to further discussions and suggestions. he/she can send his/her vote by correspondence. and enable it to form an initial idea of where the majority opinion may lie.
4.

that while the Court is expected to do everything possible in its power to appreciate the case of the defaulting party on the basis of the available facts and communications. The judgement of a Court may not go beyond the scope of the claims made by the parties or the submissions made in the unilateral application to the Court. its efforts. the Court must be fully satisfied. Lack of denial is sufficient for the Court to be satisfied that the allegations of facts on which the applicant State bases its claim are well founded. However. the respondent State withdrew from the proceedings. as the Court itself has pointed out. For instance. The Court also communicates these facts to the non-appearing State for its confirmation. On such occasions. in any case. for the Court to pronounce upon the merits of the dispute. In such cases. It is not necessary. including official statements. either through formal communications or through informal means.
. the United States of America did not participate in the merits phase of the proceedings of Military and Para-Military Activities In and Against Nicaragua (1986). It must be noted. not only that it has jurisdiction in accordance with Articles 36 and 37 of the Statute of the Court.22
Dispute Settlement
On a few other occasions. though. having lost its argument against the jurisdiction of the Court. it is not uncommon for the non-appearing State to make available to the Court its point of view. A declaratory judgement covers questions of jurisdiction.
4. or it may decline to give a decision because the dispute has already been resolved as a result of the conduct of the defendant. the other party can request the Court to decide in favour of its claim. and questions of whether there has been an infringement of a right (without pronouncing upon a wrong resulting from such infringement). interpretation of international treaties concerning the existence or nonexistence of a legal principle or relationship. the Court makes every effort to gather information concerning the position of the non-appearing State from various sources. In the case of non-appearance of a party.11 Judgement
The Court may give a declaratory judgement or judgement requiring performance. but also that the claim is well founded in fact and law (Article 53 of the Statute of the Court). cannot be expected to fully substitute or represent the interest of the defaulting State. The Court may also declare lack of jurisdiction. which it alone can defend vigorously by participating in the proceedings. but it could impose an obligation upon the parties to seek a settlement corresponding to their special circumstances by means of negotiations in good faith.

the other parties can have recourse to the Security Council for the enforcement of the decision. It is understood that the proceedings of a case involving an application for revision will be subject to the same procedure as the original case. Judges who do not fully share the reasoning of the Court. make recommendations or decide on other measures.
4. which can be taken to give effect to the judgement. However. the earlier lack of knowledge of the fact on the part of the State seeking revision of the decision of the Court should not be due to any negligence on its part. the decisions of the ICJ. is final and without appeal. when the judgement was given. of such a nature as to be a decisive factor. This means that decisions of the International Court of Justice do not have the status of a precedent (stare decis). the reasons generally given in a case and the interpretation of applicable law have high persuasive value. and declaring the application for revision as admissible. and are treated with some caution by the ICJ itself as subordinate sources of international law. unknown to the Court and also to the party claiming revision (Article 61 of the Statute).2 International Court of Justice
23
The judgement states the reason for the decision and contains the names of the judges who took part in its decision. Article 59 of the Statute makes it clear that such decisions of the Court have binding force between the parties and in respect of that particular case. However. However. are entitled to deliver their separate or dissenting opinions. at its own discretion. and those who disagree with its contents. In case of failure by one party to comply with the obligations arising from the decision of the Court. In addition.13 Enforcement of a Judgement
A judgement is binding upon the parties in accordance with Article 2 and Article 94(1) of the United Nations Charter. once delivered. the proceedings for revision can be commenced by a judgement of the Court expressly recording the evidence of the new fact.12 Revision
A judgement once rendered.
4. can be revised on application made by a party if some fact. was. The judgement. meaning that they amount to a recommendation. no application for revision may be made after the lapse of 10 years from the date of the judgement.1. The Court may require previous compliance with the terms of the judgement before it admits proceedings in revision. The application for revision can be made only within six months of the discovery of the fact. The measures can be indicated by the Security Council in this regard only under Chapter VI of the United Nations Charter. and recognizing that it has such a character as to lay the case open to revision. and is binding upon the parties.
. The Security Council may.

24
Dispute Settlement
United Nations Charter Article 94
1. the other party may have recourse to the Security Council.
. which may. make recommendations or decide upon measures to be taken to give effect to the judgment. if it deems necessary. If any party to a case fails to perform the obligations incumbent upon it under a judgment rendered by the Court.
2.
Each Member of the United Nations undertakes to comply with the decision of the International Court of Justice in any case to which it is a party.

France could not enjoy commercial or economic privileges. United States of America)
ICJ Report 1952. We now turn to some cases in which the International Court of Justice actually considered and rendered a decision on economic disputes. inter alia. France submitted that it was acting in both capacities. in its capacity as the protecting power. and it was accepted that the judgement would be binding on both France and Morocco. under the Treaty of Peace and Friendship with the Shereefian Empire of 16 September 1836. Accordingly. The Court found that the decree of French Resident General of 1948.1. which the United States did not equally enjoy. France. was discriminatory in favour of France.2 International Court of Justice
25
5. Thereafter.1
Rights of Nationals of the United States of America in Morocco. The United States of America contended that the decree violated its rights as established. also illustrate the principles of substance and procedure concerning the jurisdiction of the Court and conduct of the case before the Court. (France v. dated 30 December 1945. France relied upon the declarations it had made dated 18 February 1947 and those of the United States dated 26 August 1946 under Article 36(2) of the Statute of the ICJ as the basis for the jurisdiction. filed an application instituting proceedings before the Court. issued in pursuance of an exchange control system established in 1939. and in defence of the economic interests of its nationals. and demanded equal treatment for the goods imported from the United States with the goods imported from France and other parts of the French Union. These cases. including the manner in which the International Court of Justice arrives at a decision. the United States withdrew its preliminary objection. incidentally. RELEVANT CASES
We have discussed above the principles of jurisdiction and rules of procedure.
Decision
Note
. 176-233
Facts
This case involved the validity of the decree of the French Resident General in Morocco.
5.
Preliminary objections
The United States first raised preliminary objections on the ground that it was not clear whether France was acting on its own behalf or on behalf of Morocco. pp. This is an example where a State took up a case in its own right to protect the interest of its nationals in the then French Protectorate of Morocco. For this purpose. prescribing import regulations for goods coming from the United States. which rejected the United States’ contention.

26
Dispute Settlement
5. a few weeks after the filing of the application and long before the Court could adjudicate on the case. and the lapse of the Declaration thereafter did not affect the jurisdiction of the Court. it had to exercise its power. When he returned to Guatemala in 1940 the change of his nationality was registered in the Register of Aliens. The Court held that it was an international tribunal. his properties in Guatemala were confiscated. A similar amendment was also made to his identity document. he went to Liechtenstein and applied there for naturalization. Guatemala questioned the power of the Court under Article 36(6) of the Statute. Liechtenstein took up the matter of Nottebohm and filed an application before the International Court of Justice against Guatemala alleging wrongful acts and claiming restitution and compensation. In 1943 he was arrested as a result of war measures and taken to the United States. pp. which was valid only for a specified term. took up residence in Guatemala in 1905. He then left for Liechtenstein. and also made it the centre of his business activities. rejected the preliminary objection by an order issued on 18 November 1953. which govern its jurisdiction. therefore. not being an arbitral tribunal constituted by a special agreement by the Parties. After receiving the Liechtenstein passport he applied for a Guatemalan visa. 4-65. and the Civil Registry of Guatemala issued another certificate to the same effect. where he was interned for more than two years. In October of the same year. This was granted to him on 13 October 1939. pp. It also held that once the Court seized of the matter. had the power under Article 36(6) to interpret the instruments. Liechtenstein relied upon its own Declaration under Article 36(2) of the Statute dated 29 March 1950 and the Declaration made by Guatemala on 27 January 1947 under the same Article of the Statute. which was pre-established by an international instrument defining its jurisdiction and regulating its operations. Accordingly.2
Nottebohm (Liechtenstein v. ICJ Reports 1953. 111-125. and then again in around March 1939.
Preliminary objections
Guatemala objected to the jurisdiction of the Court on the ground that the declaration it made had expired on 26 January 1952.
Facts
Nottebohm. about a month after the war began. In 1949. In 1951. After his release in 1946 he was not allowed to return to Guatemala. It was also pointed out that it was the principal judicial organ of the United Nations. It urged the Court not to pronounce upon the Declaration. First Phase. a German national by birth. For the purpose of invoking the jurisdiction of the Court. ICJ Reports 1955. Guatemala)
Preliminary objections. The Court unanimously. in the absence of any agreement to the contrary the Court like any other international tribunal. ICJ Reports 1955. arguing that it was confined to the question of whether the dispute was within the categories mentioned in Article 36(2) of the Statute. He visited Germany just before the outbreak of the Second World War.
. Second Phase.

on the other hand. the Court came to the conclusion by 11 votes to 3 that Guatemala was under no obligation to recognize the nationality accorded by Liechtenstein. While it relied on several grounds for this purpose. on whose behalf Liechtenstein had approached the Court. that Nottebohm did not have a bond of attachment or a genuine link with Liechtenstein. argued that Liechtenstein’s claim was inadmissible.2 International Court of Justice
27
Main issues
On the merits of the case. a primary ground on which it sought to oppose the claim of Liechtenstein concerned the nationality of Nottebohm. and hence that Liechtenstein did not have the right to extend its diplomatic protection to Nottebohm against Guatemala. interests and sentiments”. It was also of the opinion that Nottebohm continued to have a close connection with Guatemala and that this was not affected by his naturalization in Liechtenstein. a citizen of Liechtenstein. Liechtenstein claimed in its application restitution and compensation on the ground that Guatemala had acted towards Nottebohm. The main issue in this case therefore revolved around the alleged irregularity of Nottebohm’s naturalization in Liechtenstein or Nottebohm’s Liechtenstein nationality.
Decision
Note
The Nottebohm case is a standard citation on the question of “genuine link”. The Court did not question the right of Liechtenstein to grant its nationality to any person according to its laws.1. The central point that the Court stressed in this case was that. The Court accordingly confined its examination to whether the naturalization conferred on Nottebohm could be legally upheld as a basis for the proceedings before the Court. seemed to have weighed heavily against the right of the latter State to extend its diplomatic protection to him. The Court then found. in a manner contrary to international law.
. The fact that Nottebohm maintained close connections with Guatemala. a genuine connection of existence. which is central to the extension of diplomatic protection by a State to its nationals. even after his naturalization in Liechtenstein. Guatemala. on the basis of the facts of the case. “nationality is a legal bond having as its basis a social factor of attachment. It was mainly concerned with the legal right of that State at the international level to provide diplomatic protection in respect of every person claimed as its nationals against another State. For this reason.

Second Phase. Ltd. ICJ Reports 1964. which resulted in damage to the company and its shareholders. Canada made several representations to Spain on behalf of Barcelona Traction. invoking Article 36(1) of the Statute of the Court. Spain). Spain was under an obligation to restore in full to Barcelona Traction its property. Belgium informed the Court. pp. Spain should at least pay to Belgium compensation equivalent to the amount of shares of the capital of Barcelona Traction owned by Belgian nationals. Belgium took up the case of its nationals who were significant majority shareholders of the company.
Main issues
Belgium claimed that the Spanish authorities acted contrary to international law against Barcelona Traction. rights and interests of Barcelona Traction.
Preliminary objections. Spain contended that the discontinuance of the proceedings earlier precluded the applicant from recommencing the proceedings. and ensure compensation for all other losses. Judicial Settlement and Arbitration between Belgium and Spain of 19 July 1927.
Preliminary objections
In its first preliminary objection. ICJ Reports 1970. and later subjected to liquidation measures. Alternatively.28
Dispute Settlement
5. Barcelona Traction also owned the shares of several other companies. ICJ Reports 1961. As another alternative. 3-357. The Court agreed with Spain that discontinuance was a procedural matter and should be examined in the context of the circumstances of the case. Belgium filed a case before the Court. Spain should pay Belgium compensation equivalent to the value of the property. Accordingly. Before the Court could proceed with the matter on the basis of the memorial filed by Belgium and the preliminary objection raised by Spain. The greater part of its share capital belonged to Belgian nationals. (hereinafter called Barcelona Traction) was a Canadian joint stock company formed in Toronto (Canada) in 1911. Barcelona Traction was adjudicated bankrupt in Spain on 12 February 1948.
Facts
The Barcelona Traction. together with the amount of the sums standing due on 12 February 1948 in favour of Belgian nationals. it relied on Articles 2 and 17 of the Treaty of Conciliation. Later. Light and Power Co. As a result of a series of measures taken by the Spanish Government. (Belgium v. Ltd. Later Belgium and Spain engaged in negotiations. some of which were operating in Spain under Spanish law.. Light and Power Co.3
Barcelona Traction. but did not succeed in getting its grievances redressed. 6166. but as these did not result in any agreement. rights and interests. that it wished to withdraw from the case. Belgium presented a new application in 1992 for the Court to hear the case.. in accordance with Article 89 of the Rules of the Court. New application. In particular. The company was chiefly concerned with the construction and operation of electric power plants.
. pp.

precluding Belgium from exercising the right to recommence the proceedings before the Court. In the view of the Court. In the absence of any clear intention on the part of Belgium to renounce its right to recommence the proceedings at the time of seeking discontinuance. which. and by recommencing the proceedings Belgium had not put Spain at any disadvantage. The second preliminary objection related to the combined effect of Article 17(4) of the 1927 Treaty. Such a conduct. Judicial Settlement and Arbitration of 19 July 1927. and in particular it found that Spain. Spain had been unable to establish any misleading intention on the part of Belgium. amounted to an estoppel. when agreeing to the request of Belgium for discontinuance under Rule 89. and hence to the Statute of the Court. and of which the Statute of the Court was an integral part. and because of the gap between 1945 and 1955. which transferred the subsisting competence of the PCIJ to consider a case to the ICJ. The Court also rejected the contention of Spain that Belgium. Spain also argued that recommencement of the proceedings was contrary to the spirit of the Hispano-Belgian Treaty of Conciliation. the Court rejected Spain’s argument that discontinuance signified renunciation of any further right of action unless the right to start new proceedings had been expressly reserved. Spain could not offer any such evidence. and Article 37 of the Statute of the ICJ. which provided for disputes between parties thereunder to be submitted to the Permanent Court of Justice. which it had contemplated pleading prior to the discontinuance of the proceedings. the burden of proof was placed on Spain to show that such discontinuance meant actual renunciation of that right. had not attached any conditions. According to the Court. according to Belgium. had misled Spain about the significance of the discontinuance of the proceedings before the Court. Spain argued that it had become a member of the United Nations. Spain argued that the termination of the PCIJ had also resulted in the termination of obligations under Article 17(4) of the Treaty in respect of Spain because Spain originally had not been a member of the United Nations when it was formed. Spain argued. According to the Court. The Court rejected this argument and held that the procedures established by the Treaty could not be regarded as exhausted so long as the right to bring new proceedings existed and until the case had been prosecuted to a judgement. conferred jurisdiction upon the Court.2 International Court of Justice
29
However. The Court rejected this argument.1. The preliminary procedure before discontinuance was said to have already exhausted the basis of the jurisdiction provided by the Treaty and it could not therefore be relied upon once again. Article 37 of the Statute could not be treated as a basis to revive the obligations Spain had had under Article 17 of the Treaty. It considered that Article 37 imposed three conditions which the Belgian application fully met: the Treaty of 1927 was in force and
. Spain would be able to raise all the objections to the jurisdiction of the Court. only in December 1955. by its conduct.

The third preliminary objection related to the capacity of Belgium to espouse the claims of Belgian nationals. which is a question relating to merits.
. The Court also considered whether there might not be. Accordingly. The fourth preliminary objection related to the exhaustion of local remedies. even if such an injury in fact was also an injury to several of its shareholders. The Court further held that once the obligation was revived. and the injury suffered was a consequence of such measures against the company itself. according to Spain. the corporate entity of the company had not ceased to exist. only the company was endowed with a legal personality.
Decision
The Court first addressed itself to the right of Belgium to exercise diplomatic protection of Belgian shareholders in a company incorporated in Canada. but to the company itself. there was no dispute about the incorporation of the company in Canada where it had its registered office. Two situations were studied: (a) the fact that the company had ceased to exist. the Court attached them to the merits of the case. In the view of the Court. and the matter was referred to the ICJ as the competent forum. According to the Court. in fact had exercised protection for Barcelona Traction for a number of years. and only it could pursue a legal action on its own behalf in respect of injuries suffered. Canada continued to retain its capacity to protect Barcelona Traction. Canada.30
Dispute Settlement
Article 17(4) was an integral part of that Treaty. The Court noted that in municipal law the concept of company was founded on a firm distinction between the rights of the company and those of the shareholders. whatever the reasons for the Canadian Government’s change of attitude. The Court found that while Barcelona Traction had lost all its assets in Spain and had been placed in receivership in Canada. being the national State of the company. special circumstances serving as exceptions to the general rule. therefore. in the present case. which resulted in that Government not acting on behalf of Barcelona Traction after a certain point in time. For this reason. nor had the company lost its capacity to take corporate action. were different from the interests of Barcelona Traction. both the parties to the dispute were parties to the Statute. The complaint concerned measures taken not in relation to Belgian nationals. and about the company’s Canadian nationality. In view of the mixed questions of law and facts. which. Similarly. and particularly. that fact could not constitute a justification for the exercise of diplomatic protection by another State. which was generally acknowledged. it could operate only in accordance with the Treaty that provided for it and continued to relate to any dispute arising after the Treaty came into force. the measures complained about were not aimed at shareholders directly. and (b) whether the protecting State of the company lacked the capacity to take action. In the present case. in view of the close relationship between the questions raised in the third and fourth preliminary objections and the issue of denial of justice. the Court rejected the second preliminary objection.

2 International Court of Justice
31
Belgium argued that it could make a claim when investments by its nationals abroad were prejudicially affected and thereby affected the State’s national economic resources. However. on grounds of equity. Tanaka and Gross felt that the measures taken by the Spanish authorities were in the nature of expropriation. between the critical dates. three judges supported only the operative portion of the judgement for different reasons. By 15 votes to 1 the Court further held that it had no jurisdiction.)
Note
During the extended proceedings of this case. Judge Jessup came to the conclusion that a State. Jessup and Tanaka. which would create a climate of insecurity in international economic relations. and even simply the general international law obligations in the sphere of the treatment of foreigners. amounting to confiscation.1. and that the Belgian Government’s allegation concerning the denial of justice was unfounded. The Court rejected this also on the ground that acceptance of any such right on the part of Belgium would open the door to competing claims on the part of different States. Diplomatic protection of corporations and shareholders as juridical and natural persons. shareholders in Barcelona Traction. Judge Gross held that it was the State whose national economy was adversely affected that possessed the right to take action but that proof of Barcelona Traction’s direct connection to the Belgian economy had not been produced. of those natural and juristic persons on whose behalf it had sought to claim. the Court held that the third preliminary objection was valid. and the right of a third
. as it upheld the third preliminary objection. by denying the jus standi of Belgium and refraining from pronouncing upon the fourth preliminary objection on exhaustion of local remedies. In view of the above. a variety of controversial legal issues were considered. had a right to present a diplomatic claim on behalf of shareholders who were its nationals. which was contrary to international law. the Court noted such a right could only exist in the form of a treaty or a special agreement. Judges Fitzmaurice. Despite this vote. Judge Tanaka felt that the third and fourth preliminary objections should have been dismissed. under certain circumstances. The Court did not consider it necessary to deal with the fourth preliminary objection on the exhaustion of local remedies. which Belgium could not establish. Of the other 12 members of the majority who supported the operative paragraphs of the judgement. but Belgium had not succeeded in proving the Belgian nationality. as claimed by Belgium. several appended separate opinions. the Court had missed an opportunity to contribute to the clarification and development of international business litigation and international economic relations in international law. Some judges felt that. Belgium further based its rights to espouse the claims of its nationals. (See the separate opinions of Judges Fitzmaurice.

and in general the status and personality of a company in international law.A. However. (ELSI). failed and the American corporation seriously considered closing and liquidating ELSI to minimize its losses.
5. Meanwhile the Prefect of Palermo annulled on 22 August 1969 the requisition order issued by the Mayor of Palermo. which held 99. The Court of Cassation upheld this decision in 1975. and the American corporation attempted to make it self-sufficient in Italy through Italian partners. ELSI also issued dismissal notices to its workforce. ELSI filed an administrative appeal against the requisition order to the Prefect of Palermo. The Court did not offer any conclusive pronouncements on any of these issues. as opposed to obligations States owe to each other in a bilateral or limited multilateral relationship.83 per cent. however. was established in Palermo. Italy)
ICJ Reports 1989.p.16 per cent of the shares. were primary issues.p. and lifting of the corporate veil to determine effective nationality. and its subsidiary Machlett Laboratories (Machlett). which held the remaining 0. The Palermo Tribunal issued a decree of bankruptcy on 16 May 1968. the application of the test of a genuine link to corporate entities. The Court of Appeal of Palermo also awarded damages caused by loss of use of the plant during the period of requisition in response to a petition filed by the trustee in bankruptcy. and no surplus remained for
. The issue of whether disguised appropriation amounts to confiscation was yet another issue. Italy.4
Elettronica Sicula S. wholly owned by the United States Corporation. The Mayor of Palermo reacted to the threatened closure of the plant and dismissal of the workforce on 1 April 1968 by issuing an order for immediate requisitioning of the plant and related assets for a period of six months. These attempts. and the bankruptcy proceedings were closed in November 1975. on the existence and nature of the erga omnes obligations which States owe to the entire international community. (ELSI) case (United States v. A bankruptcy petition was also filed by ELSI on 26 April 1968 on the ground that the requisition of the company had resulted in the company losing control of the plant. the amounts realized were not sufficient. ELSI ran into economic trouble from 1967. which in turn did not allow it to avail of its immediate source of liquid funds for paying debts and bills. cathode-ray tubes. not being a State of legal incorporation.
Facts
ELSI S. semiconductor rectifiers. where it produced electronics components.A. It had a workforce of 900 employees and produced five major product lines: microwave tubes. This case is presently being cited for yet another obiter dictum. Raytheon Company (Raytheon).32
Dispute Settlement
State. Other issues included: the distinction between injury to the rights of a company and injury to the interests of shareholders. X-ray tubes and surge arrestors. an Italian corporation.

independent of the dispute over the alleged violation in respect of Raytheon and Machlett. ELSI. Further. the United States transmitted a note to Italy enclosing a claim on behalf of Raytheon. which was wholly owned by United States companies. agreed to deal with this objection within the framework of merits. was not the cause of ELSI’s bankruptcy. while unlawful. this case was submitted to the Chamber of the Court under Article 26 of the Statute of the Court.1. as it had not indicated until the time of filing of the counter-memorial that the parties could plead their case before United States courts in accordance with their rights under the FCN Treaty. and second. The United States also submitted an application to the ICJ. Before doing so it rejected two United States arguments: first that the requirement of exhaustion of local remedies was not applicable to the present case as its claim was based on the FCN Treaty. Commerce and Navigation (FCN) concluded between Italy and the United States. independently of ELSI. to the American Corporation and its subsidiary). since Italy could not satisfy the Chamber that there clearly remained some remedy which Raytheon. the majority of judges found that it had not been sufficiently established that an orderly liquidation of ELSI’s assets would still have been feasible at the time of its requisitioning. While rejecting the Italian objection.e.
Main issue
Decision
. ought to have pursued and exhausted. that Italy could not raise that objection. Further.
Preliminary objections
Italy raised objections to the United States application on the ground that the American companies had not exhausted the local remedies available to them in Italy. The United States claimed that Italy.2 International Court of Justice
33
distribution to the shareholders (i. The parties. had violated certain provisions of the FCN Treaty of 1948 between the two parties and the Supplementary Agreement. in accordance with the terms of Article 36(1) of the Statute of the Court. by its actions with respect to an Italian company. in its view. In 1974. however. the requisition order had not interfered with the control and management of the company in any real sense. according to the wishes of the parties. the Court held that Italy had not shown the existence of a local remedy. seeking a declaratory judgement on the direct injury to the United States through infringement of its rights under the FCN Treaty. At the outset. Thus the Chamber felt that the requisition. the Court rejected the Italian objection that the United States companies had not exhausted the local remedies available in Italy. it could not accept Italy’s objection on the ground of non-exhaustion of local remedies. The United States claimed reparations from Italy for the losses suffered by ELSI. based on several alleged violations of the Treaty of Friendship. As to the merits. 1951 thereto. Accordingly.

It noted in this regard that although the requisition could be an expropriation. On the matter of exhaustion of local remedies. or of the Supplementary Agreement of 1951. there had been no violation of Article VII of the FCN Treaty. by 4 votes to 1. Finally.
Note
This case illustrates the possibility of utilizing the Chamber procedure of the Court. Accordingly. and second. The issues involved were of essentially commercial and economic interest and based on a bilateral treaty. the Chamber first unanimously rejected the Italian objection to consider the United States’ application. it was not so in the present case. which were concerned with the protection and security of nationals and their property. it could not be considered arbitrary. It clarifies the principles concerning “estoppel”. which had been exhausted. and that their loss therefore was not due to any action taken by the Italian authorities. In view of the above. while the Court held that it was a principle applicable in this case. which provided for the rights of the parties to dispose of their property and interests. the Chamber stated that it was ELSI’s precarious financial situation that deprived its shareholders from disposing of the company’s properties in an orderly manner. since ELSI was already under an obligation to file for bankruptcy. which prohibited arbitrary or discriminatory measures.34
Dispute Settlement
The Chamber also dismissed the United States claims alleging violation of Article V(1) and (3) of the FCN Treaty. in the context of an operating system of law and of appropriate remedies of appeal. The Chamber also held that the requisition order did not violate Article 1 of the Supplementary Agreement to the FCN Treaty.
. According to the Chamber. As the requisition order was made consciously. it found that there existed no remedies for the United States companies to exhaust independently of remedies available to ELSI. found that Italy did not commit any breach of the FCN Treaty of 1948 between the parties. arbitrariness would require more than mere unlawfulness.

economic and financial matters. pp. which is not the case in respect of the arbitral tribunal. investment and the economic rights of States and individuals. a decision rendered by the Court. being a principal organ of the United Nations. the basic feature of the jurisdiction of the PCIJ. such as the dispute settlement procedure of the World Trade Organization. Further. from the cases discussed in this module. at p. that prevents States from referring extra legal or non-legal matters. Even though the Statute of the Permanent Court of International Justice allowed States to confer compulsory jurisdiction upon the Court through declarations made under an optional clause. In this sense. In fact it is said that there is nothing in the Statute of the Permanent Court. it has also been observed that
“the competence of the Court is already wide. Allot P (1972).31 Similarly.32
Further. gives it the opportunity not only to advance the cause of development of international law. The decision of the ICJ is immediately binding on the parties to a dispute without the need for additional ratification or confirmation by another body. which are established by a special agreement between the parties to a dispute. The advantage of referring a case to the ICJ is that the parties do not have to bear the expenses of the Court. 11.1. and there is nothing in the nature of the Court or its experience. and now the International Court of Justice. 157
. In addition. for all the judicial caution it exhibits. it can be seen that the Court has been quite willing to deal with disputes involving trade. Economic disputes were submitted during the inter-war period either to arbitration or to the Permanent Court of International Justice (PCIJ). but also to put on the decision the imprimatur of the international community. such as political. ICJ: A FORUM FOR SUBMISSION AND CONSIDERATION OF ECONOMIC DISPUTES
The suitability of referring economic disputes to the ICJ is generally recognized. 128-158. for a decision. which suggests that the Court would be unable to deal with any particular category of disputes”. p. which was established in 1921 as part of the system of the League of Nations. was consent of States parties to a dispute. like that of the ICJ. and the possibility of referring certain class of economic disputes to the International Court of Justice cannot be ruled out. Even after the creation of more specialized regimes to deal with economic disputes.2 International Court of Justice
35
6. the jurisdiction of the Court was similar to that of international arbitral tribunals.
31 32
Lord McNair(1957). the Court’s response to particular questions on rules and procedures and questions of admissibility is predictable given the welldeveloped jurisprudence of the Court on these matters.

States parties to the Statute of the ICJ may refer to it all legal disputes concerning “the existence of any fact which. This is evident from the many declarations they have filed under Article 36(2) of the Statute of the Court. See Wellens K (1996). p. even if the subject matter of the dispute is essentially economic in nature. considerations and circumstances. the observations of the Court on the nature of erga omnes obligations. it would appear desirable to submit such a case to the ICJ. Even though the Court is called upon to decide upon the dispute submitted to it in accordance with international law.33 a typical dispute involving economic interests. if established. According to Article 36(2)(c). upon a request from the Applicant State to the dispute. would constitute a breach of an international obligation. States have treated economic disputes as fit cases for submission to the Court.” Further. 252. could be of any kind. Accordingly. From the jurisprudence of the Court. it is also amply established that economic disputes are as much justiciable as any other disputes.34 Further. with a view to helping States arrive at an agreement by negotiation in good faith or by any other means. and they could clearly be economic facts.
. In that case. paragraphs 33-34 at p. the existence of which the Court is called upon to determine.
33 34
See Second Phase. In this connection. has given rise to a whole new doctrine of international law based on the interests of the international community distinct from the traditional bilateralism among States. which are owed to the entire international community. It could render declaratory judgements. 605. it may be noted that the facts. either upon a request made by one of the parties or on its own initiative. A few more points with reference to the Statute of the Court are useful to note which show the flexibility that exists in the jurisdiction of the Court to deal with economic disputes. under sub-paragraph (d) of the same Article. where issues of greater interest to the international community arise in a given case. It could suspend or discontinue its proceedings. to clarify the rights and obligations of the parties involved without having to deal with allegations of violation of obligations. it need not pronounce a judgement in every matter that is referred to it.36
Dispute Settlement
This may be illustrated by reference to the Barcelona Traction case (1970). legal disputes concerning the “nature and extent of the reparation to be made for the breach of an international obligation” may also be referred to the Court. ICJ Reports (1970).

they are of a different class and raise broader issues of international law.
. relevant cases were classified into three categories: (i) where economic facts. factors and circumstances are relevant to a case but fall outside the scope of judicial function.1.35 Cases involving delimitation of land and maritime boundaries are essentially disputes about sovereignty over natural resources and the exercise of sovereign rights of States.2 International Court of Justice
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According to one study of economic disputes dealt with by the Court. Even though disputes concerning these matters would involve economic rights and obligations. and (iii) economic rights and obligations which have been the subject matter of the dispute. (ii) those which are relevant but do not constitute the core of the matter.
35
Ibid. trade and investment issues are directly part of the subject matter of a dispute. Hence the scope of our study is limited to those cases where economic rights.

.

15. 9. 17.
7.1. how is the jurisdiction of the Court constructed/defined on the basis of reciprocity? What is an “automatic reservation” and is it a valid reservation? What are the conditions governing devolution of jurisdiction of the PCIJ over the ICJ in respect of: a) Article 36(1). as between an applicant State and a respondent State. 14. TEST YOUR UNDERSTANDING
After having studied this module. on what terms and conditions? Can a judgement rendered by the Court be revised later? If so. 10. devolve upon the ICJ? Can a State not giving its consent under Article 36(1) or (2) of the ICJ Statute initiate a case before the World Court? Can the jurisdiction of the Court be found on the basis of recommendations made by the Security Council between the parties to a dispute in accordance with Article 36(3) of the Charter? What is the role of a judge ad hoc in the ICJ. and how is one appointed? What is the basis of jurisdiction of the ICJ? For unilateral declarations filed under Article 36(2) of the Statute with different reservations. 12. What is the relationship between the ICJ and PCIJ? Under what conditions is jurisdiction conferred upon the PCIJ or a tribunal that might have been instituted by the League of Nations. or if a party withdraws from the proceedings of the Court?
2. and b) Article 36(2)? What is the role of the “time factor” in determining the jurisdiction of the Court under Article 36(2) of the Statute? Do the conditions specified in Article 36(3) limit the discretion of a State in specifying reservations to a declaration filed under Article 36(2) of the Statute? Can the Court order interim measures of protection suo moto when parties to the dispute have not specifically requested them? Is it necessary for the Court to first find the jurisdiction in the case before it can indicate the interim measures of protection? What kind of preliminary objections to the jurisdiction of the Court can be raised? How are they treated in the practice of the Court? Can a third State intervene in the proceedings before the ICJ? If so. 13.
11. 1.2 International Court of Justice
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7. 8. 6. the reader should be able to answer the following questions. on what grounds? How is the judgement of the ICJ enforced? Can the ICJ proceed with a case if one of the parties does not appear. 16.
4.
. 3. 5.

.

It makes investments in mining operations in country X. Country B nationalizes the operations and takes over the properties of the Transatlantic Company. Country A contends that it should accept responsibility as a successor State and offers to submit the matter to arbitration. Adjudge and declare that country B is guilty of denial of justice to Transatlantic Company. The investments had been made in accordance with an agreement between countries A and X and a contract entered into between Transatlantic Company and country X. 3. HYPOTHETICAL CASES
Case No. committed an internationally wrongful act violating the terms of agreement between countries A and X. and immediately restore ownership and management to Transatlantic Company and pay compensation for the loss suffered by the company since the takeover. a national of country A.2 International Court of Justice
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8. but with a reservation that it would not cover disputes arising from situations prior to its independence. The mining operations were nationalized with a nominal payment of compensation. which came into effect five years before the separation of country B from country X. The case could not be taken up for more than a year due to the heavy load of cases pending before the courts of B. What are the options available to country B in responding to the application of country A before the ICJ?
. Country X files a declaration accepting compulsory jurisdiction of the ICJ under Article 36(2). B declines responsibility for the agreement concluded with country X. but B refuses that offer. Transatlantic Company filed a case before the local courts of competent jurisdiction. I
Transatlantic Company is incorporated in country A. B filed a declaration when it became independent.
2. Adjudge and declare that country B should immediately rescind the order of nationalization. and the mining operations in which Transatlantic Company made investments come under the jurisdiction of the country B. Country B gains independence from country X. which is a national of A. Adjudge and declare that country B. Country A makes an application to the ICJ requesting that it.1. 1. Country A then takes up the matter for speedy resolution of the economic dispute between Transatlantic Company. as a successor State to country X.
Country A also asks for interim measures of protection obliging country B to refrain from taking any action with regard to the assets of the company that would prejudice an effective implementation of the decision of the ICJ. 1.

The fishing company. which it believes provides no basis for the jurisdiction of the ICJ?
Case No.. Should B appear before the court. including foreign fishermen. being foreign nationals. of which they are nationals. Country C lodges a protest with country A challenging the validity of laws and regulations of country A as a violation of the rights of States and the freedom of the high seas. (hereafter referred to as “fishing company”) is a company incorporated in country B but the nationals of country C hold substantial shareholdings in it. Therefore. cannot engage in fishing either in its exclusive economic zone or in areas of the high seas adjacent to the zone without conforming to the rules and regulations enacted by country A fixing quotas for the fishermen and the duration of time they can engage in such fishing from season to season. and its declaration had no reservations. Country B does not question the law of country A as it has a similar law of its own. there is a provision for aggrieved persons. having filed a declaration under Article 36(2) of its Statute. including foreign nationals. it points out that the aggrieved company or its shareholders. country C does not have the right to sponsor the claim of the fishing company which is incorporated in country B. In any case. to appeal to a board of trustees responsible for environmental protection. Under the law of country A. Country A is also a party to the optional jurisdiction of the ICJ. The declaration of country C reserved against the jurisdiction of the ICJ any dispute in respect of matters that it considers as being within its domestic jurisdiction. to take up the case of the fishing company with country A with a view to allowing it to continue to fish in the high seas without the restrictions imposed by country A. fishermen. II
Country A enacted national legislation to protect the environment.
3. should first seek local remedies available in its domestic jurisdiction. The decisions of the board can further be appealed against in the higher courts of country A. the shareholders of the fishing company persuade country C. World Wide Fishing Ltd.
. is therefore affected by the new law of that country.42
Dispute Settlement
2. Country A rejects the claim of country C on the ground that under international law. Country C is a party to the optional jurisdiction of the ICJ. or keep silent and let the court come to its own conclusion on the basis of documents and submissions made by country A. which traditionally engages in fishing in the high seas adjacent to the exclusive economic zone of country A. or send the objections and not appear before the court.
What kind of objections could B raise against the jurisdiction of ICJ? (a) Against the interim measures of protection sought. According to this law. (b) Against the merits of the case. which is in question.

1. 2.1. the rights and freedoms of the high seas enjoyed by Country C and all States. which is a national of country B? Could country A further argue that environmental protection is a higher priority. and that such protection cannot effectively be accorded if a strict demarcation between the exclusive economic zone and the high seas is maintained? In any case. Could country A take advantage of the reservations made by country C to its declaration? Could country A argue that the claim of country C is essentially a case of diplomatic protection that it is not entitled to give the fishing company.
2. there is no need for country C to let its nationals first seek local remedies otherwise available under the laws of country A. Could country C argue that freedom of the high seas is a well established principle of customary and conventional law. as long as effective local remedies are available within the domestic jurisdiction of country A would the ICJ have a locus standi to entertain the dispute between countries A and C?
3. it has also direct interest in preserving its own rights and freedoms as against the unlawful laws and regulations of country A. Could country C further argue that where the interests of States are involved.2 International Court of Justice
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Country C files an application before the ICJ challenging the validity of the law and regulations of country A as a violation of international law and.
4. 1. and that all States are free and equal in the enjoyment of these rights. Indicate the possible objections country A could raise to the jurisdiction of the Court.
. and that accordingly.
3. in particular.
Identify possible grounds on which country C could seek and sustain its case against country A. no State can impose its national laws and regulations on activities within the high seas? Could country C also argue that even though the dispute involved the interests of its nationals.

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. Compulsory Jurisdiction of the ICJ. Fitzmaurice GG (1986). NY. The Permanent Court of International Justice. Lissitzyn OJ (1951). The exhaustion of local remedies in the case law of international courts and tribunals. Martinus Nijhoff. Macmillan. Settlement of disputes. London. Elias TO (1983). (1994). Leyden. (1976). Macmillan. Hudson MO (1943). Report of a Study Group of the David Davies Memorial Institute of International Studies. Reservations in Unilateral Declarations Accepting the Compulsory Jurisdiction of the ICJ. p. Greenwood Publishing Group. Haesler T (1968). Anand RP (1961). Gross L. FURTHER READING
Books
• • Alexandrov SA (1995). Lauterpacht H (1958). ed. (1987). CT. Surrey. New Delhi and Bombay... The Law and Procedure of the ICJ. I and II. Springer-Verlag New York Incorporated. NY. Dobbs Ferry. British Year Book of International Law. New York. Kelsen H (1951). The International Court of Justice. Stevens. Oxford. Boston. New York. London Institute of World Affairs. The Hague and Boston. The ICJ: Its Future Role after 50 Years. ed. 1928-1942. New York and London. Interim Measures Indicated by International Courts (1994). 517. Manual of Public International Law. Dobbs Ferry. Oxford University Press. Sijthoff. in International Disputes: The Legal Aspects. In: Sorensen M. NY. Damrosch FL. Kluwer Law International. Hambro E (1952). Asia Publishing House.2 International Court of Justice
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9. Cambridge. The Hague. The International Court of Justice: Its Role in the Maintenance of International Peace and Security. Vols. McNair A (1957). Martinus Nijhoff. The Development of International Law by the International Court. The Case Law of the ICJ. Lecture delivered at the University of Manchester.
• • • • • • • •
• • • •
• • •
. The ICJ at a Cross Roads. Bernhardt R.1. Allot P (1972). Westport. the Netherlands. Murty BS (1968). Muller AS et al. Cambridge University Press. “The place of Law and Tribunals in International Relations”. The Law of the United Nations. The Future of the ICJ. eds. The ICJ and Some Contemporary Problems. London. ed. ed. New York. (1997). New York.

Oxford University Press. The Hague. Increasing the Effectiveness of the ICJ.
•
• • •
. New York. II. 25: 133-157. Kluwer Law International. Precedent in the World Court. Recueil des Cours de l’ Académie de droit international de La Haye. The Time Factor in the Jurisdiction of the International Court of Justice.. The Advisory Opinions of the International Court. eds. The Hague. Grotius Publications. Cambridge University Press. International Court of Justice. Shahabuddeen M (1996). 93: 223-363. An International Law Miscellany. Cambridge. 66: 479-490. Verzjil JHW (1967). Kluwer Law International. Gross L (1972). The Hague. In: Encyclopedia of Public of International Law. New York. Wellens K (1996). Reservations to the acceptance of compulsory jurisdiction of the International Court of Justice. Economic Conflicts and Disputes before the World Court (1922-1995). Review of the role of the International Court of Justice. Some observations on the compulsory jurisdiction of the International Court of Justice. Justice in International Law: Selected Writings of Judge Stephen M. International Customary Law and Codification. Cambridge. Schlochauer H. Cambridge University Press. Hambro E (1948). Rosenne S (1993). Schwebel. Goldworthy PJ (1974). 58: 415-431. American Journal of International Law. Liber Amicorum Judge Shigeru Oda. Rosenne S (1997). Vol. (1995). Netherlands Yearbook of International Law. Vol. 15. British Year Book of International Law. The Hague/London/ New York. Thirlway Hugh (1984). Sijthoff. Leydon. eds. NY. Martinus Nijhoff. Oxford. Kluwer Academic Publishers. Tomuschat C (2002). Pratap D (1972). Clarendon Press. 68: 258-277.
Articles
• Briggs HW (1958). Interim measures of protection in the International Court of Justice. Kluwer Law International. NY. Limitations upon the judicial functions. The Law and Practice of the ICJ (1920-1996). Kluwer Law International. In Ando N et al. revisited. Gross L (1964). The Jurisprudence of the World Court: A Case by Case Commentary. American Journal of International Law. Rosenne S (1960). Cambridge.-J. Schwebel MS (1994). The 1928 General Act for the Pacific Settlement of International Disputes. Oxford.46
Dispute Settlement
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•
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Peck C and Roy LS. (1997). Max Planck Institute. America Journal of International Law.

icj-cij. Lawson RC 1952).
Other sources
The ICJ web site at http://www. 46: 219-238.2 International Court of Justice
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•
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•
Hambro E (1954). Forum prorogatum or acceptance of a unilateral summons to appear before the International Court. Jessup PC (1945). Waldock CHM (1956).The problem of the compulsory jurisdiction of the World Court. The Court as an Organ of the United Nations. 7: 349366. International and Comparative Law Quarterly. 2: 377-391. Jennings RY (1958). 32: 244-287. 23: 233-246. American Journal of International Law. Foreign Affairs. Recent cases on ‘Automatic’ Reservations to the Optional Clause. Decline of the Optional Clause.org
. 3: 2-22.1. International and Comparative Law Quarterly. British Year Book of International Law. Waldock CHM (1948). International Law Quarterly. The authority of the advisory opinions of the International Court of Justice.